REC JobsOutlook - Feeling positive!

Key Points

The exciting news from the REC monthly JobsOutlook report last month shows that the “intention to hire permanent staff at a record high”.

4 out of 5 employers are planning to increase their permanent hires in the next quarter. This is great news for the economy and I would hope to see unemployment to fall even further, it is currently at a 6 year low of 2.12 million.  This is also supported by nearly half of employees planning to increase agency workers within the same period.  Although 34% have “no spare capacity to accommodate increased levels of activity.”

Looking further into the future, this theme is set to continue for the next 4-12 months and to set more records since REC started their records in 2009.

Skills Shortages and quality of hires

REC has found that technical and engineering professionals are still in high demand; it has remained at 13% of employers anticipating a shortage in the last 3 years. Education and training has also increased from 13% to 15% in the last 3 years.  It is not clear what factors are affecting this but I would imagine a major reason is due to the speed of change.

Temporary Recruitment

In the short term, there is a positive net balance “up an encouraging three percentage points in May to 46%. It is also similar for the medium-term outlook which has risen by four percent to 46%.  It seems these figures have come from those employers who were previously putting their hiring on hold.

In total “employment has now risen by 2.9%” Compared to last year the UK now has 780,000 more people in work.  This explains why for the first time in 9 years the consumer confidence index is finally positive. 14 months ago it was at -27 and today stands at 0.

Agencies and Employers

The question asked was “How important would you say that agency workers are for your organisation?” Since 2012 the only area that has seen positive growth is for responding to growth from 43% in 2012 to 63% in 2014. The rest have all seen a decrease since last year. The categories were:

Peaks in demand

Covering leave

Keeping running costs down

Managing uncertainty

Managing change

Providing short-term access to key strategic skills

Employers satisfaction with agencies remains high but at the same level of 81% with 38% as very satisfied and only 1% as very dissatisfied.  The criteria employers use to select an agency are price/cost of workers, quality and notably management of information is fast becoming a high priority from 42% in 2012 to 75% in 2014. Other areas of interest are agency brand, trade association membership and agency scale.

Overall the outlook is positive. During the last four year employers are recruiting more and becoming more confident.  This lends itself to a healthy economy and employment to continually grow.

Want to read more check out: How I would select a Recruitment Agency?

Figures are taken from the month of May year on year.